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|Title: ||Examining the impacts of FDI on the wage premium of skilled labor|
|Other Titles: ||Yan jiu wai guo zhi jie tou zi ji shu xing gong ren jiao fei ji shu xing gong ren gong zi cha e de ying xiang|
|Authors: ||Pan, Chenyi (潘辰貽)|
|Department: ||Department of Economics and Finance|
|Degree: ||Master of Philosophy|
|Issue Date: ||2009|
|Publisher: ||City University of Hong Kong|
|Subjects: ||Wages -- Skilled labor -- OECD countries.|
Investments, Foreign, and employment -- OECD countries.
Wage differentials -- OECD countries.
|Notes: ||CityU Call Number: HD4909 .P36 2009|
64 leaves : ill. 30 cm.
Thesis (M.Phil.)--City University of Hong Kong, 2009.
Includes bibliographical references (leaves 57-64)
|Abstract: ||This paper examines whether foreign direct investment (FDI) is an important contributing factor
to the rising wage inequality between skilled and unskilled labor in the selected OECD countries.
While numerous studies in the extant literature (e.g. Sachs and Shatz (1996), Bernard and Jensen
(1997)) have examined the impacts of trade on wage inequality, few have studied the impacts of
FDI on it. One distinct difference between trade and FDI is that while trade in the service sectors
(which is generally more skill intensive) is small, FDI in the service sectors is relatively much
larger. For this reason, one important bias caused by the omission of FDI from the study is the
underestimation of the impact of globalization activities on the wage differential across
industries with diverse skill intensities. Since inward FDI makes use of the labor inputs in the
destination countries, it has a direct impact on the labor demand and wages in those countries. In
view of this gap in the current literature, the contribution of this study is twofold. First, it uses
industry level FDI, wage and skill-intensity data from five OECD countries to examine the
relationship between the sectoral composition of FDI and the wage premium of the skilled labor.
It is found that inward FDI that concentrates on the skill-intensive industries tends to drive up the
wage premium. Second, this paper employs a simultaneous system model that takes into account
the interrelationship between trade, FDI and wage premium. The results indicate that the skill
intensities of the inward FDI play an important role in the determination of the wage premium
even after the effects of trade are accounted for.|
|Online Catalog Link: ||http://lib.cityu.edu.hk/record=b2374835|
|Appears in Collections:||EF - Master of Philosophy |
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